EU's rich states blaze a trail with aid pledge

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London: European Union ministers surprised and delighted aid
agencies when they agreed on a dramatic increase in funds for
developing countries that will see the EU's 15 rich member states
reach the UN's goal of giving 0.7 per cent of national income in
aid by 2015.

The move will mean a virtual doubling of the EU's combined aid
by 2010, from $US40 billion ($52.5 billion) this year to $US80
billion in 2010, when the rich 15 pass the 0.51 per cent mark. The
EU's 10 new, mostly poorer, members pledged 0.33 per cent of
national income in aid by 2015.

The deal's potential significance lies in its impact on other
countries.

"It's a very generous deal that lays down the gauntlet to the
United States and Japan," said a spokesman for the relief agency
Oxfam.

The US aid program is notoriously modest - only 0.16 per cent of
GNP in 2004 - although the US Government insists it bears its share
of international burdens. Australia plans to donate 0.28 per cent
of gross national income next financial year.

Only four EU states - Denmark, Sweden, the Netherlands and
Luxembourg - have already met the 2015 target of 0.7 per cent, a UN
goal since 1970. Six other member states - Finland, Belgium, Spain,
France, Germany and Britain - have promised to reach it before
2015.